Sports-betting bill clears House of Representatives

A bill that would make Delaware the only state in the East to allow sports betting has cleared the State House of Representatives.

Staff reports

A bill that would make Delaware the only state in the East to allow sports betting has cleared the State House of Representatives.

If House Substitute 1 for House Bill 190 (as amended) becomes law, supporters say the state could realize between $30 million and $70 million in new revenue annually. It’s that promise, in a difficult budget year, that propelled the measure to passage on a mixed bipartisan vote of 28-10.

“It’s not a partisan issue, it’s a revenue issue,” said State Rep. Vince Lofink (R-Bear), the bill’s prime sponsor. “I think … the timing is perfect for this kind of initiative.”

A report by Morowitz Gaming Advisors – commissioned by Delaware’s three race tracks/slot machine venues – estimates the state could earn as much as $69.7 million dollars in the first full year of legalized sports gaming. Nearly $26 million of that total would be generated from sports-betting, with the remainder coming from increased slot machine play and horse racing action produced by the greater amount of traffic drawn to the tracks.

A separate state report released earlier this year estimated the state could reap up to $30.6 million if sports betting were implemented. About 90-percent of the expected money would come from improved slots revenues.

In either case, Rep. Lofink said that potential is something lawmakers cannot ignore. The slowing national economy has caused near-term state revenue estimates to drop by hundreds of millions of dollars.

“We’re asking taxpayers to dig into their pockets or face the possibility of draconian cuts for many of the programs we need around this state. Any additional revenue we can bring in, without burdening the taxpayers … is very, very important.”

The bill’s supporters note that sports gaming would give Delaware a competitive advantage. When Congress enacted the Professional and Amateur Sports Protection Act in 1992, states that did not already have legalized forms of sports gaming (or were in the process of implementing it) were barred from the practice. Only Nevada, Montana, Oregon and Delaware were exempted.

Delaware had a sports gaming card game in the late 1970s, resulting in the exemption. However, sports betting in Delaware would be limited. Unlike Las Vegas, where you could bet on a single game, Delaware would only be allowed to operate games requiring combination or parlay bets, similar to the now defunct card game. According to the Morowitz report, the odds of winning would be longer since the player would have to win both portions of the combined bet to be paid. However, the payoff would be higher than it would be for a simple head-to-head bet.

HS 1 for HB 190 would allow sports betting at Delaware’s three slot machine venues: Delaware Park, Dover Downs and Harrington Raceway. Revenue from the new gambling would be split according to the same formula currently used for the slot machine take, with the state getting about 35 percent of the net and the tracks 48 percent. The remainder would be split between vendors and higher purses for horseracing.

Before passage, the bill was amended to bar sports betting on any amateur sporting events involving Delaware teams. Also under the amendment, sports betting could not begin until February 1, 2009. Rep. Lofink says the implementation date was a concession to Gov. Minner, who does not support sports betting and pledged it would not take effect while she was in office. Her term expires in January.

Testifying during the debate on the House floor, David Remes, a counsel for the National Football League, urged lawmakers to reject the proposal. He called the potential financial return “entirely speculative” and maintained that any potential gain needed to be weighed against the societal costs. Remes also said legal sports wagering would act as a gateway to illicit gambling, which he noted “offers credit, better odds and tax-free winnings.”

However, Remes statements did not go unchallenged. State Rep. Nancy Wagner (R-Dover) took issue with his claims that legalized betting “would injure the reputation of sports” and change the way children perceive them.

“There are a whole bunch of folks (players) involved with the National Football League who have ‘issues’ with the criminal justice system,” she said. “These are the ‘heroes’ you are giving to our young people? You are paying these people more money than God … because they are talented athletes [not because they are good citizens] … So I don’t know how you become the moral arbiter of what’s good for little kids.”

The bill now heads to the Senate, where it will reportedly be taken up before the end of scheduled legislative action on June 30. Rep. Lofink said it would not surprise him if the proposal evolves over the next six weeks and the Senate passes an amended or alternate sports-betting measure.

Sussex Countian

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